ABSTRACT
The high rate of embezzlement, poor leadership, low rate of
accountability, general laxity of the finance department and corruption in
Nigeria Local Government, and Ilorin East Local Government in particular really inspired
me to work on this project topic: THE PROBLEMS OF EFFECTIVE UTILIZATION OF
REVENUE AVAILABLE TO LOCAL GOVERNMENT. In doing this, secondary
data were used. In organizing and presenting data collected, tables and
percentages were used as well. The data analysis revealed that ineffective
utilization of revenue in the local government had created a negative impact in
Ilorin East Local Government Area of Kwara State. The researcher therefore recommended that the revenue
available to local government should be handle by honest and accountable
personnel, those who posses sound knowledge about revenue generation and
utilization. The outcome would be an effective and efficient management and
utilization of local government revenue in such a way that would deliver the
needed development.
TABLE OF CONTENTS
Title Page i
Approval Page ii
Dedication iii
Acknowledgment iv
Abstract v
Table of Content vi
CHAPTER ONE
INTRODUCTION
1.1 Background of
the Study 1
1.2 Statement of
the Problem 1
1.3 Significance of
the Study 3
1.4 Purpose of the
Study 5
1.5 Limitation of
the Study 5
1.6 Definition of
Terms 6
1.7 Research
Questions 8
CHAPTER TWO
LITERATURE REVIEW
2.1 Theoretical
Framework 10
2.2 Functions of
Local Governments Councils
11
2.3 Sources of
Revenue to Local Governments In Nigeria
17
2.4 The problem of
effective utilization of Revenue of
Local
Governments
21
2.5 The impact of
the problems of effective
utilization
of revenue
available to local governments 36
2.6 Solutions/way
forward to the problems of effective
revenue
utilizations 38
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research
Design and Methodology 47
3.2 Sources of Data 48
3.3 Area/location
of Study 50
3.4 Population of
the Study 51
3.5 Sample and
Sampling Techniques 53
3.6 Method of data
analysis 55
CHAPTER FOUR
INTERPRETATION AND ANALYSIS OF
FINDINGS
4.2
Data Presentation and Analysis 56
CHAPTER FIVE
SUMMARY, CONCLUSION AND
RECOMMENDATION
5.1 Summary of
Findings 66
5.2 Conclusion
69
5.3 Recommendations
70
References
73
Bibliography 76
Appendixes 79
CHAPTER ONE
1.1 BACK
GROUND OF THE STUDY
Nigeria as a sovereign nation operates a
federal system of government i.e. the federal government, state government and
the local government councils.
Onwo (1992) Observed that each level
of the three tiers of government derive its powers not from the magnanimity of
the central government but from the constitution; each level of government has
defined responsibilities assigned to it by the constitution. The implication of
this is that the three segments of governments are mutually interrelated in a
unified effort to make life worth – while for the masses.
1 .2 STATEMENT
OF THE PROBLEM
The relevance of the local government
councils as the government at the grassroots level is measured by the quality
and quantity services rendered to the rural dwellers.
For
the council to render meaningful services, in form of provision of basic
amenities, construction and maintenance of roads, creation of employment opportunities
for the citizens and pay staff salaries as and when due, money is undoubtedly
required.
Without the availability of revenue,
a local government council will not only be incapable of serving the people but
will undoubtedly crumble. It therefore, follows that for the local government
to discharge its statutory functions effectively, it should not only be
adequately funded but such fund should be efficiently applied.
1. One of the
fundamental problems in local government financial administration is the issue
of Effective Utilization of Revenue Available to the Local Government. Ilorin
East local government council may have its unique problems that militate
against its financial administration.
2. The problem of
delay in payment of federal/state government grants to the local authorities.
3. The problems of
accountability in the local government council.
4. Another problem
is that of ineffective financial control and management both internally and
externally.
5. Fifthly, the
problem of financial mismanagement and embezzlement of available funds in local
government council.
Finally, the problem of corruption as
stated by Oluwale (2000) militate against the utilization of local government
revenue.
1.3 SIGNIFICANCE
OF THE STUDY
The significance of any human
Endeavour is measured by its relevance to solving human problems. Therefore,
the significance of the study is measure by its relevance to solving the
problems of effective utilization of revenue available to local governments in Nigeria.
The project will be of benefit, first
and foremost to the Ilorin East Local Government administration, as it will
expose to them potential sources of generating of revenue internally.
Secondarily, it will help the council to
strengthen its financial bases as this study would highlight some identified
problem hampering the utilization of revenue in the council.
Thirdly, it will also be useful to
the indigenes of Ilorin East local government to co-operate with local council
administrators to enable them build a viable local government by paying their
taxes and rates promptly.
Fourthly, the project will be useful
to various institutions especially Kwara State Polytechnic, Ilorin, Kwara State
for gaining greater knowledge and understanding of the problems of effective
utilization of revenue available to local government.
Finally, the project will be useful
to the general public, organizations, companies etc that may have interest in
the project.
1.4 PURPOSE OF THE
STUDY
The central focus of the study is to
critically analyze the problems of effective utilization of revenue available
to Ilorin East local government area as a case study.
1. The study is
meant to identity the major revenue sources available to local government.
2. To ascertain the
problems that confronts the council’s administration in utilizing revenue for
their services.
3. To find out
whether or not the revenue is adequate for the council’s expenditure.
4. To investigate
the system of financial control in the local government council.
1.5 LIMITATIONS
OF THE STUDY
This
is centered on the problems of effective utilization of revenue available to
local government in Nigeria
but due to the wide or vast nature of Nigeria,
the researcher now chose Ilorin East local government as a case study to
deal with these particular problems in other local government in Nigeria.
The study is also centered on the
sources of revenue available to local government both the internal and external
sources of revenue.
1.6 DEFINITION
OF TERMS
Some
concepts and terms required proper explanation or definition to enhance our
understanding of the theme where necessary opinions of scholars will be cited
to illustrate the terms.
Democracy
The
Ancient Greeks defined democracy as a government of the people, by the people
and for the people. This political arrangement allowed every adult male citizen
to participate in government activities.
Dare
(1981) Postulated that modern democracy is a system of government which gives
to individual maximum freedom and periodical opportunities to choose their
leader and programmes. Multiple party-systems are a vital characteristic of a
democratic government.
Pragmatism
The term pragmatism is derived from
the Greek from which practical action arise. It could simply be referred to as
philosophy or practical consequences or result oriented. In our context, it is
used to describe political programmes aimed at better living standard of the
masses.
Rural Development
Rural development is a strategy
designed to improve the socio-economic life of the rural dwellers. It involves
extending the benefits of development to the less privileged in the society.
When applied to local government councils as a third tier of government, in the
county, it means conscious efforts by the government, to carry government
programmes to the village level. In so doing, deliberate actions are initiated
to improve the rural population.
Accountability
Owing to the fact that local
government provides local services like sanitation, education, transportation
etc to the people of the area, it is logical that it is accountable to the
local people within its area of jurisdiction.
This principle of accountability is
better ensured by making local government or local government bodies elective
institutions. If they function below expectation, they may be criticized by the
people or voted out during the next elections. Absence of local accountability
may make them indifferent and insensitive to the need, feelings and aspirations
of the local people.
RESEARCH QUESTIONS
In the effort of carrying out this
research, the following questions were formulated:
1. Are you aware of
the constitutional provision of revenue sources to the tiers of government in Nigeria?
2. By what means
has Ilorin East Local government planned the expenditure of available revenue?
3. What systems of
financial control measures are used by council administrators?
4. Has the
utilization of the Revenue Available to Ilorin East Local Government produced
positive or negative effects?
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